Rationalization may differentiate the original deterministic explanation of the behavior or feeling in question. They are the excuses people give themselves for not living up to their own ethical standards. In terms of market structure, financial models, theories and technologies that embody these concepts have the force to rationalize markets—to make them calculable and more efficient, in terms of the efficient markets hypothesis (EMH). Examining a company’s application portfolio is important to attain more efficient operations and cost integrations, reducing stranded costs left by a seller and streamlining the portfolio to best serve the business. Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, What is Rationalisation? Rationalization may also refer to the process of becoming calculable. Mechanization – The element mechanization is targeted to replace human resources with machines. Data Rationalization is a Managed Meta Data Environment (MME) enabled application which creates/extends an ontology for a domain into the structured data world, based on model objects stored in various models (of varying levels of detail, across model files and modeling tools) and other meta data. Rationalization is thought to be more widespread than a reorganization; it may involve closing some operations while expanding others. In the corporate sector, the term is also used for closing down or selling off some units to adjust the operational structure so that it can be in sync with core competencies. Use precise geolocation data. For example, the introduction of certain financial models or financial technologies rationalizes markets and make them more efficient. 10 Ways To Be Humble and Practice Humbleness, Marketing Ethics – Definition, Importance, Role and Examples, Ethics in Finance – Meaning, Importance and Code of Ethics, Group – Definition, Characteristics, Functions and Types. Production volume must be transferred to new or more profitable products to ensure the business remains solvent. Conservation and proper utilisation of resources – An essential need for rationalization is because the process helps in conserving resources. 10 Ways To Be Confident, Organizational Conflict: Definition, Types and Advantages, Business Risk: Definition, Types, Importance and How to Minimize it, The Perpetual Transition Management Framework Explained, The Theory of Bureaucratic Management by Max Weber, How to be Humble? Actively scan device characteristics for identification. Therefore, when rationalizing a product line, executives need to consider various factors. It is modern and advanced, Research – The process of rationalization involves proper marketing research that aids in taking the steps needed to know and meet the, Rationalization helps in the standardization of processes that simplify the manufacturing method and eliminates waste, It helps in introducing new techniques as well as the latest equipment and machinery that boosts productivity, Rationalization aids in avoiding unhealthy competition, Unsold stock is a massive problem for every sector and rationalization aids in mitigating this problem by removing unhealthy competition, Enhances the creditworthiness of weaker and inefficient units by integrating them with strong ones, The process of rationalization offers higher remuneration and good security to the workforce, One of the advantages of rationalization is that it provides the workforce with a chance to develop their efficiency levels, It provides the workforce with better working conditions, As rationalization lowers the production cost, the consumers can avail of the benefits via reduced prices. Synonyms: rationalisation; rationalization. You might take the last piece of chocolate cake because, gosh darn it, you wanted it, but you justify it with the rationalization that "it was just going to go to waste." Similar to a reorganization, a rationalization is more widespread, encompassing strategy as well as structural changes. The rationalization is a concept of systematic reasoning that is designed to reduce waste in terms of effort, time and resources and simplify processes for the betterment of a company. Measure ad performance. rationalize meaning: 1. to try to find reasons to explain your behaviour, decisions, etc. Meaning: The organization of a business according to scientific principles of management in order to increase efficiency. The essence of the rationalization process is the increasing tendency by social actors to the use of knowledge, in the context of impersonal relationships, with the aim of achieving greater control over the world around them. The goal is to achieve improvements in business operations. It usually involves a shift in investment or other policy. Having an authoritative application inventory is critical for IT leaders to make informed decisions and rationalize the application portfolio. Employee Background Check: Concept, Importance, Steps & Advantages, How to be Successful? Engaging in applications rationalization, especially during mergers and acquisitions, helps companies reduce costs, operate more efficiently and focus on supporting deal objectives, legal and regulatory issues, systems and process integration and business continuity. rationalization translation in English - English Reverso dictionary, see also 'rationalist',rationality',rationalize',radicalization', examples, definition, conjugation In addition, when products leave the portfolio, fixed costs typically remain the same; the costs must be spread across the remaining product line, increasing unit costs. It is ... whose purpose is unknown on the grounds that they have some quite different but somehow logical meaning. Peggy James is a CPA with 8 years of experience in corporate accounting and finance who currently works at a private university. Application rationalization means selecting your applications based on business need and prioritizing related actions and effectively managing the value of both existing and proposed applications. Classified under: Nouns denoting acts or actions. The portfolio effect describes how a product’s addition or removal affects the rest of the company’s products. The rationalisation is a process that every business entity considers important because it aids in minimizing costs and increasing revenues to improve the bottom line of the financial statement. http://www.theaudiopedia.com What is RATIONALISATION? ), technology stacks, dependencies, MTTR (mean time to recovery), contacts, and more. Develop and improve products. It has all relevant information about the applications such as business capabilities, application owners, workload categories (e.g. There is a tendency in modern times to quantify experience, knowledge, and work. Learn more about the rationalization of society and see some examples, and then test your knowledge with a quiz. Rationalization of society is a concept first explored by Max Weber. Company rationalization often entails a change of policy, alternation of products, and it may lead to reducing or adding employees. ‘By using the conjugate, I can do the necessary rationalization.’. If products are not rationalized, their numbers continue to increase, adding complexity and increased support costs to the company’s bottom line. rationalization noun [C or U] (MAKING EFFECTIVE) the process of making a company, way of working, etc. Information and translations of Rationalization in the most comprehensive dictionary definitions resource on the web. 10 Ways To Be Successful, Barriers To Entry: Meaning, Types, Examples, Definition Of Entrepreneur – Define Entrepreneurship, How to be Confident? Market cannibalization is a loss in sales caused by a company's introduction of a new product that displaces one or more of its own older products. Many applications do not support the company’s objectives after each merger or acquisition and need revision to support the new business. Synonyms: rationalisation; rationalization. Rationalizations are invented explanations that hide or deny true motivations, causes, or actions. Rationalization. Classified under: Nouns denoting acts or actions. ization is the reorganization of a company in order to increase its operating efficiency. The offers that appear in this table are from partnerships from which Investopedia receives compensation. The portion of sales that will not transfer to other products needs to be estimated and compensated for by new products entering the portfolio or the sales growth of existing products. Rationalization is done by a company to improve its operations. What does RATIONALISATION mean? Means–end (goal-oriented) rationality is used to precisely calculate that which is necessary to attain a goal. systematic organization; the act of organizing something according to a system or a rationale Synonyms: rationalisation, systematisation, systematization the organization of a business according to scientific principles of management in order to increase efficiency rationalization (ræʃənəlaɪzeɪʃən) Word forms: plural rationalizations variable noun...this rationalization of his bedside grief. It underpins the emergence of capitalism, bureaucracy, and the legal state. : 2. to make a company, way of…. Although rationalization may reduce complexity in the supply chain, as well as redundancy in both the portfolio and support costs, the costs can be difficult to quantify. Meaning: The organization of a business according to scientific principles of management in order to increase efficiency. Meaning of Rationalization. Replace old machinery- The need for rationalisation is felt in industries because it helps in replacing old equipment with new, modern, and technologically advanced machinery to boost. Measure content performance. The following factors will help to know the necessity of rationalization –, The elements of rationalization are as follows-, The advantages of rationalization are as follows-, The disadvantages of rationalization are as follows-. In economics, rationalization is an attempt to change a pre-existing ad hoc workflow into one that is based on a set of published rules. I am a serial entrepreneur & I created Marketing91 because I wanted my readers to stay ahead in this hectic business world. Select personalised ads. This sort of reorganization may lead to an expansion or reduction in company size, a change of policy, or alteration of strategy pertaining to particular products offered. Simplification results in high production with reduced costs and it may involve some! 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